Even if it's not a huge purchase, we think it was good to see that Gavin Wates, a Silver City Minerals Limited (ASX:SCI) insider, recently shelled out AU$60k to buy stock, at AU$0.01 per share. That purchase might not be huge but it did increase their holding by 32%.
Silver City Minerals Insider Transactions Over The Last Year
In fact, the recent purchase by Gavin Wates was the biggest purchase of Silver City Minerals shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.011 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Silver City Minerals insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Gavin Wates.
Gavin Wates purchased 10913667 shares over the year. The average price per share was AU$0.011. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Silver City Minerals
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Silver City Minerals insiders own 20% of the company, worth about AU$641k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Silver City Minerals Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Silver City Minerals insiders are well aligned, and that they may think the share price is too low. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But note: Silver City Minerals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.